The McGraw Company Is Accumulating Data to Be Used in Preparing

question 19

Multiple Choice

The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year.The cost behavior pattern of the maintenance costs must be determined.The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs.Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted)

Based upon the data derived from the regression analysis,420 maintenance hours in a month would mean the maintenance costs would be budgeted at: (rounded to the nearest whole dollar)

• A) $3,797.
• B) $3,780.
• C) $3,746.
• D) $3,600.

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Definitions:

Centration

A cognitive limitation in early childhood, where a child focuses on one aspect of a situation while ignoring others.

Neural-Visual Network

A system in the brain that processes visual information, integrating it with neural signals for perception and understanding.

Numerical Understanding

The ability to comprehend, interpret, and work with numbers.

Intuitive Thought

Thinking that reflects preschoolers’ use of primitive reasoning and their avid acquisition of knowledge about the world.